Days ago a Court issued a ban to all Uber services in Italy, stating unfair competition practices in a case brought up by the Taxi associations.
After Uber filed an Appeal, the Court lifted the ban temporarily until the Appeals Court hears and the case and decides.
So Uber is back in business in Rome and Milan, at least for now.
Edit: I found this Italian Associated Press Agency (ANSA) article in English.
The Uber services that are (for now) allowed in Italy continue to be only luxury black limousine services (e.g. Uber Black). Licensed professional drivers are the only ones allowed to operate with any Uber service.
The more economical and popular Uber service driven by ordinary folks using their cars (called UberPop in Europe), is still not legal in Italy.